Kootenay Gold Inc.
TSX VENTURE : KTN

Kootenay Gold Inc.

May 14, 2008 13:25 ET

Kootenay Announces 3D Induced Polorization (IP) Geophysical Survey and Surface Sampling Program on Promontorio Completed, Phase II Drill Results Pending

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - Kootenay Gold Inc. ("Kootenay") (TSX VENTURE:KTN) is pleased to announce an update on their 3D Induced Polarization ('IP') geophysical survey, Surface Sampling and Phase II drilling program on their wholly owned Promontorio Property, Sonora, Mexico. The Phase II 10,000 meter drill program has completed 13 holes. Three holes from the Phase I program have been deepened to depths of over 200 meters and a further 10 holes drilled to depths of up to 440 meters. Results are pending and will be released when received.

Jim McDonald, CEO of Kootenay, commented: "The geophysical survey of 3D induced polarization conducted over the Promontorio Mine area has been very successful in mapping out sulfide mineralization and is proving to be a good predictive tool for drill targeting. Drilling, the geophysical survey, preliminary mapping and prospecting have outlined what is believed to be a large complex silver, gold, lead and zinc mineral system."

Geophysical Survey

The 3D IP shows the outline of a large area of chargeability at +20m millivolts/volt contour ("mV/V"), which correlates to areas of well known mineralization. The area of chargeability is "L" shaped with one 'arm' measuring 1600 meters and the other 900 meters with widths being 250 to 600 meters. (Chargeability is a measure of the voltage decay of an electric current put into the ground and is used to help map out areas of sub surface mineralization.) To view the IP map, please click on the following link: http://media3.marketwire.com/docs/ktn0514.pdf.

Within this large IP chargeability anomaly are two areas of higher chargeability the most western of which is represented by a north northwest trending zone of chargeability at +30 or mV/V measuring some 750 x 300 metres. The Pit and Adobe Breccias are located in the southern portion of this western most IP chargeability anomaly approximately from 40 meters to 300 meters below surface which is the depth limit of the survey in this area.

The second zone of higher IP chargeability, the E Zone, is located some 600 meters northeast of the Pit-Adobe area. It is represented by a circular zone, widening at depth measuring some 550 x 400 metres. At a +30mV/V contour the top of this anomaly is plotted at about a 100 meter depth and the bottom of the anomaly is plotted at a 300 meter depth which is the limit of the survey in this area.

The +30mV/V and +20mV/V contour has shown with drilling to correspond well with mineralization footprint. Mineralization also extends within the +20mV/V contour as shown by mineralization at surface and in drill holes which sit within the +20mV/V contour.

Surface Sampling

Preliminary prospecting and sampling shows that alteration and mineralization occurs at surface over both chargeability anomalies. A well zoned alteration 'bulls eye' of agrillic to phyllic alteration surrounded by propylitic alteration sits over and straddles the E Zone. The alteration anomaly measures some 750 X 350 metres, elongated to the east northeast. Select grab samples overlying the +30mV/V chargeability contour reported values to 5.1gpt gold (5,139 ppb), 228gpt silver (228 ppm), lead 40,139 ppm and zinc 4,487 ppm while values within the +20mV/V chargeability contour from weathered iron/manganese/silicic breccias and irregular zones and veins hosted in a strong propylite alteration range to .88gpt (886 ppb) gold, silver to 1,082 gpt (1,082 ppm), copper to 4,904 ppm, lead to 50,936 ppm, zinc to 52,359 ppm with anomalous antimony and molybdenum (to 429 ppm). For reference 1000 ppb equals 100 ppm equals 1 gram per metric tonne and 10,000 ppm equals 1%. Results from grab samples from this zone are an indicator that the eastern chargeability and alteration may reflect another area of mineralization with good grades in silver, gold, lead, zinc and copper. This zone has yet to be drilled. A table of the grab sampling from this area can be found at the company's website (http://www.kootenaygold.ca/s/Focus.asp).

New Mineralized Showings extend 500 meters beyond IP Study

Prospecting and reconnaissance geologic mapping resulted in the recognition of numerous previously unknown or undocumented zones of mineralization. Seven significant mineralized zones (including Area E noted above) and at least 6 lesser mineralized zones were identified on the grid. A map of these areas and a table of complete results can be found at the company's website (http://www.kootenaygold.ca/s/Focus.asp).

A total of 450 samples were collected from the different areas. Highlights from the samples were gold greater than 1000 ppb (to 6.62 gpt), silver greater than 100 ppm (to 2,678 gpt), lead greater than 1000 ppm (to 89,535 ppm), zinc greater than 1000 ppm (to 87,806 ppm), Cu greater than 1000 ppm (to 52,017 ppm), Pb greater than 1000 ppm (to 89,535 ppm), Zn greater than 1000 ppm (to 87,806 ppm) and Mo greater than 100 ppm (to 1,996 ppm). All samples are prospector grab samples, they are highly selective and biased towards anomalies. It needs to be determined if the samples that define any of the anomalous areas represent "continuous" mineralization or point anomalies. All the anomalous zones represent targets for future evaluation.

It appears that the most significant mineralization showings are located within and at the periphery of the IP anomalies and may extend up to 500 metres beyond. It is possible that the strong IP anomalies represent porphyry systems, and at least, highly pyritic bodies whose origin acted as the heat pump and source for the anomalous metals noted in the discovery area and the new showing areas.

Much of the newly recognized mineralization in conjunction with the original showing in the old workings indicates that the mineralization process at Promontorio is strong, multi-phased and dynamic and very much under-explored. Cursory examination of the satellite image and preliminary reconnaissance indicates an area for exploration many times larger than the area outlined by the present grid and thus suggests good potential for additional discoveries.

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of the Company.

Analysis of the 450 samples were done by iPL Labs Ltd. out of Richmond, B.C. Canada. iPL Labs Ltd. is an ISO 9001-2000 certified full service laboratory. All of the samples referred to herein are grab samples that were collected in the field,recorded and sealed in plastic sample bags and delivered to iPL's preparation laboratory in Hermosillo, Sonora Mexico. A pulp of each sample is prepared in the preparation lab and sent to Richmond for analysis. Each pulp is analyzed using a multi-acid disgestion with Inductively Coupled Plasma analysis on 30 elements and a Fire Assay ICP for gold and Fire Assay Gravimetric finish on gold and silver on samples at or greater than 1000ppb or 100 ppm respectively.

ABOUT KOOTENAY

Kootenay is an emerging exploration Company actively developing mineral projects in British Columbia, Canada and the Sierra Madre Region of Mexico. The Company's top priority remains the ongoing development of its 100% owned Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico.

Cautionary Note: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Kootenay Gold Inc.
    James McDonald
    CEO
    (403) 238-6986
    or
    Kootenay Gold Inc.
    Ken Berry
    President
    (604) 601-5652 or 1-888-601-5650
    Website: www.kootenaygold.ca